Wgu Risk Management Risk-Register Report
State Farm Risk Register
Xavier Smith
Western Governors University
State Farm Risk Register
State Farm has chosen to further to its already-existing operations in Canada, with the result of capturing millions of new customers. These customers will require both brick-and-mortar and telephonic support. Brick-and-mortar locations number in the thousands and continue to grow. With the acquisition of a greater number of customers, these locations will be able to absorb and support a respectable number of these new customers. Yet internal analyses indicate that the younger customer base, that is, customers in their 20s and 30s, prefer virtual or telephonic interactions and will actively shun brick-and-mortar locations. It is these customers who expect to receive timely answers to their questions telephonically. This customer demand is the impetus behind the company’s need to construct a new call center in Canada, specifically in Quebec.
Through a qualitative analysis, State Farm has identified eight risks:
1. Natural disaster, 2. Canadian government collapse, 3. Environmental clearance for call-center construction, 4. Canadian permit delays, 5. Differing site conditions, 6. Substantial currency fluctuations, 7. Substantially volatile oil prices, and 8. Labor strike.
Each risk will be treated further below.
Natural Disasters
Just as with other countries, Canada experiences natural disasters that are disruptive to both individual and corporate life. With the establishment of a call-center presence in the country, this naturally occurring phenomenon must be considered.
According to Public Safety Canada, which maintains a database of all natural disasters throughout the world, from 1950 to 2000, Canada has experienced 481 natural disasters, inclusive of floods, earthquakes, and tornadoes (Public Saftey Canada, 2012). These natural disasters have a twofold effect on State Farm’s call-center presence in the
Xavier Smith
Western Governors University
State Farm Risk Register
State Farm has chosen to further to its already-existing operations in Canada, with the result of capturing millions of new customers. These customers will require both brick-and-mortar and telephonic support. Brick-and-mortar locations number in the thousands and continue to grow. With the acquisition of a greater number of customers, these locations will be able to absorb and support a respectable number of these new customers. Yet internal analyses indicate that the younger customer base, that is, customers in their 20s and 30s, prefer virtual or telephonic interactions and will actively shun brick-and-mortar locations. It is these customers who expect to receive timely answers to their questions telephonically. This customer demand is the impetus behind the company’s need to construct a new call center in Canada, specifically in Quebec.
Through a qualitative analysis, State Farm has identified eight risks:
1. Natural disaster, 2. Canadian government collapse, 3. Environmental clearance for call-center construction, 4. Canadian permit delays, 5. Differing site conditions, 6. Substantial currency fluctuations, 7. Substantially volatile oil prices, and 8. Labor strike.
Each risk will be treated further below.
Natural Disasters
Just as with other countries, Canada experiences natural disasters that are disruptive to both individual and corporate life. With the establishment of a call-center presence in the country, this naturally occurring phenomenon must be considered.
According to Public Safety Canada, which maintains a database of all natural disasters throughout the world, from 1950 to 2000, Canada has experienced 481 natural disasters, inclusive of floods, earthquakes, and tornadoes (Public Saftey Canada, 2012). These natural disasters have a twofold effect on State Farm’s call-center presence in the
References: Public Saftey Canada. (2012, January 10). Canadian Disaster Database. Retrieved from Public Saftey Canada: http://www.securitepublique.gc.ca/index-fra.aspx